Midcap Financial Investment Corporation · NASDAQ:MFIC
Midcap Financial Investment — Q1 2024 Earnings Presentation
19 slides from Midcap Financial Investment's earnings presentation, May 7, 2024
Slide 1: Financial Results for the Quarter Ended March 31, 2024
Financial Results for the Quarter Ended March 31, 2024 MidCap Financial Investment Corporation May 7, 2024 Unless otherwise noted, information as of March 31, 2024. Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of Apollo Global Manageme
Slide 2: Disclaimers, Definitions and Important Notes
Disclaimers, Definitions and Important Notes Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: futu
Slide 3: Disclaimers, Definitions and Important Notes (Cont.)
Disclaimers, Definitions and Important Notes (Cont.) Participants in the Solicitation MFIC, its directors, certain of its executive officers and certain employees and officers of MFIC Adviser and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Pr
Slide 4: Summary of Quarterly Results
Summary of Quarterly Results Results for Quarter Ended March 31, 2024 and other recent highlights Results for Quarter Ended March 31, 2024 and Other Recent Highlights Net investment income for the quarter ended March 31, 2024 was $28.5 million, or $0.44 per share, compared to $29.7 million, or $0.
Slide 5: MFIC Senior Secured Diversified Investment Portfolio
MFIC Senior Secured Diversified Investment Portfolio Portfolio Snapshot Portfolio by Strategy Portfolio by Industry Portfolio $2.35 bn # of Portfolio Companies 154 # of Industries 23 8% 16.5% 19.3% Corporate Lending and Other1 % Total Portfolio 92% 8% Non-Accrual % Total Portfolio 0.6% 2.9% 7% 2.8%
Slide 6: Financial Highlights
Financial Highlights ($ in thousands, except per share data) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Financial Highlights Net investment income per share $0.44 $0.46 $0.43 $0.44 $0.45 Net realized and change in unrealized gains (losses) from investments and ($0.05) $0.05 $0.03 ($0.05) $0.01 foreign curre
Slide 7: Portfolio Highlights
Portfolio Highlights ($ in thousands) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Portfolio by Strategy, at fair value ($) Leveraged lending $1,819,089 $1,788,586 $1,788,540 $1,830,834 $1,803,762 Life sciences 155,128 153,666 187,698 189,687 204,036 Asset based, franchise finance and lender finance 143,175 1
Slide 8: Corporate Lending Portfolio Detail
Corporate Lending Portfolio Detail1 ($ in thousands) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Portfolio by Asset Class, measured at fair value ($) First Lien $2,051,724 $2,016,930 $2,010,175 $2,050,105 $2,015,709 Second lien 13,459 $31,886 $66,558 68,441 69,357 Other 52,210 $48,435 $50,122 49,636 50,852 T
Slide 9: Corporate Lending Commitments
Corporate Lending Commitments1 ($ in thousands) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Gross Commitments Made by Asset Class First lien $149,153 $174,923 $19,745 $78,733 $110,020 Second lien and Other 118 16 - - 311 Gross commitments made $149,270 $174,939 $19,745 $78,733 $110,331 Gross Commitments Made
Slide 10: Funded Investment Activity
Funded Investment Activity ($ in thousands) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Fundings, excluding Merx Aviation and Revolvers Gross fundings $128,925 $113,518 $16,188 $72,828 $105,792 Repayments (95,398) (152,086) (58,552) (57,666) (54,151) Net fundings, excluding Merx Aviation and revolvers 33,527
Slide 11: Credit Quality
Credit Quality As of March 31, 2024, 0.9% of total investments at amortized cost, or 0.6% of total investments at fair value, were on non-accrual status ($ in thousands) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Investments on Non-Accrual Status Non-accrual investments at amortized cost $23,506 $31,568 $33
Slide 12: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in thousands, except per share data) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Per Share NAV, beginning of period $15.41 $15.28 $15.20 $15.18 $15.10 Net investment income 0.44 0.46 0.43 0.44 0.45 Net realized and change in unrealized gains (losses) (0.05) 0.05 0.03 (0.05) 0.0
Slide 13: Quarterly Operating Results
Quarterly Operating Results ($ in thousands, except per share data) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Total investment income Interest income (excluding PIK) $65,681 $70,065 $66,681 $66,655 $64,787 Dividend income 12 473 740 115 23 PIK interest income 930 930 479 812 784 Other income 1,708 484 275
Slide 14: Quarterly Balance Sheet
Quarterly Balance Sheet ($ in thousands, except share and per share data) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Assets Investments at fair value $2,352,835 $2,334,199 $2,369,108 $2,409,287 $2,385,211 Cash and cash equivalents (including foreign currencies) 49,612 122,127 43,150 50,197 70,063 Interest r
Slide 15: Funding Sources as of March 31, 2024
Funding Sources as of March 31, 2024 Debt Facilities ($ in thousands) Debt Issued/ Final Maturity Interest Principal Amount Amended Date Rate Outstanding Secured Facilities: 1 Senior Secured Facility ($1.705 billion) 4/19/2023 4/19/2028 SOFR + 187.5 +10bps 4 $ 625,110 6 5 MFIC Bethesda CLO I LLC Cla
Slide 16: Interest Rate Exposure as of March 31, 2024
Interest Rate Exposure as of March 31, 2024 1 Investment Portfolio by Interest Rate Type Funding Sources by Interest Rate Type Variable rate assets Fixed rate debt 1% Fixed rate assets 23% 4% Non yielding and non-accrual assets 9% Common equity 42% Floating rate debt Floating rate 35% assets 86% Flo
Slide 17: Realized and Change in Unrealized Gains (Losses) by Strategy
Realized and Change in Unrealized Gains (Losses) by Strategy ($ in millions) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Leveraged lending ($4.0) $4.5 $0.0 ($0.5) $1.0 Life sciences ($0.5) ($3.3) ($2.2) ($2.0) $0.1 Franchise Finance ($0.0) $0.0 $0.1 $0.1 ($0.1) Asset based and Lender finance ($1.9) $2.7 $0.2
Slide 18: Outstanding Commitments
Outstanding Commitments ($ in thousands) Mar-24 Dec-23 Sep-23 Jun-23 Mar-23 Revolver Obligations and Bridge Loans Funded 1 $75,762 $89,089 $89,691 $88,357 $100,566 Unfunded 1, 2 182,695 176,723 175,720 181,088 182,462 Par $258,457 $265,811 $265,411 $269,445 $283,029 Unfunded Revolver and Bridge Loan
Slide 19: Contact Information
Contact Information Elizabeth Besen Gregory W. Hunt Investor Relations Manager Chief Financial Officer and Treasurer Phone: (212) 822-0625 Phone: (212) 822-0655 Email: ebesen@apollo.com Email: ghunt@apollo.com 19
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